ASIA-PAC EQUITY WRAP: Asian stocks began the week cautiously heading into month-end and after firmer-than-expected PCE Prices spurred hawkish Fed bets

Analysis details (05:57)

Asia-Pac stocks began the week cautiously heading into month-end and a slew of upcoming releases including Chinese PMI data, with headwinds also from last Friday’s losses stateside where firmer-than-expected Core PCE data spurred hawkish terminal rate bets. ASX 200 (-1.1%) was negative as participants digested a deluge of earnings and with the mining industry leading the retreat seen across nearly all sectors aside from energy which benefitted from a jump in Woodside Energy’s profits. Nikkei 225 (-0.1%) price action contained by a lack of pertinent macro drivers and with BoJ Governor nominee Ueda’s largely reiterated prior comments at the upper house confirmation hearing. Hang Seng (-0.7%) and Shanghai Comp. (-0.4%) were choppy with initial pressure amid geopolitical frictions after the G20 finance ministers meeting failed to agree on a Communique due to opposition from Russia and China, while National Security Adviser Sullivan also warned there will be a real cost if China provides military assistance to Russia for the Ukraine war. However, Chinese stocks gradually recovered from the early weakness and briefly turned positive with sentiment helped by a continued liquidity injection and after China drafted guidelines to regulate financial support in the housing rental market, although the gains proved to be short-lived.

27 Feb 2023 - 05:55- Research Sheet- Source: Newsquawk